Oil’s Downfall Aided by Rise of Fracking

Posted on May 20, 2016 by Ryan Vanzo

Earlier this year, oil prices fell to roughly 15-year lows, a global downturn for one of the world’s most lucrative industries. Oil’s decline has had global ramifications, impacting not only the United States, but major exporters like Saudi Arabia, Russia and Venezuela. So what happened?

For a clue, it helps to look at Saudi Arabia. Petroleum products account for 90 percent of the country’s export market, forcing its economy to fluctuate at the whim of oil prices. With a GDP of more than $650 billion — making it one of the world’s largest economies — Saudi Arabia has been punished by low oil prices.

In 2008 and 2011, with...